The best stocks to invest in on the Norway Stock Exchange

Norway is home to one of the world’s most stable and well-functioning stock exchanges, making it an attractive destination for foreign investors. In addition, Norway offers several tax advantages that make it even more appealing.

If you’re looking for a stable and profitable investment, stocks on the Norway Stock Exchange are worth considering. Norway is an attractive destination for investors with a history of solid returns, low volatility, and a strong economy.

Why you should invest in stocks on the Norway Stock Exchange

Here are four reasons why you should invest in stocks on the Norway Stock Exchange:

Diversification

When you invest in stocks, you diversify your investment portfolio. This means that your risk is spread out over different investments, which can help to protect you from losses if one particular stock or sector performs poorly.

History of strong returns

The Norway Stock Exchange has a history of solid returns. Over the past ten years, the Oslo Børs All-Share Index has returned an average of 7.2% per year, compared to 6.5% for the S&P 500.

Low volatility

Volatility is the degree to which a stock price changes over time. A low volatility stock does not experience big price swings, which can be helpful if you’re looking for stability in your portfolio. The Oslo Børs All-Share Index has lower volatility than the S&P 500, making it a less risky investment.

Strong economy

Norway has a strong economy, with a GDP per capita of over $70,000. This means that there is potential for companies on the Norway Stock Exchange to generate healthy profits. In addition, Norway has a AAA credit rating from all three major credit rating agencies, making it a safe place to invest.

The top five stocks to buy on the Norway Stock Exchange

So, what are the best stocks to buy on the Norway Stock Exchange? Here are our top five picks:

Statoil ASA (STO)

As one of the world’s largest oil and gas companies, Statoil is a safe bet for long-term growth. The company has a strong presence in upstream and downstream operations, giving it a diversified business model. Statoil is also active in renewable energy, exposing it to another high-growth industry.

Norsk Hydro ASA (NHY)

Norsk Hydro is another large oil and gas company with a diversified business model. The company has a solid upstream presence and is also involved in aluminium production. In addition, Norsk Hydro has been active in renewable energy, with a particular focus on hydropower.

DNB ASA (DNB)

DNB is Norway’s largest bank and one of the leading financial institutions in Scandinavia. The bank has a robust retail operation and is active in corporate banking and asset management. DNB has a well-diversified loan portfolio and is considered a safe investment.

Telenor ASA (TEL)

Telenor is Norway’s largest telecommunications company, and the company has a strong presence in the mobile and broadband markets and is also active in satellite services. Telenor is well-positioned to benefit from the growth in the telecoms sector, making it a sound investment choice.

Kongsberg Gruppen ASA (KOG)

Kongsberg Gruppen is a diversified industrial company with aerospace, defence, maritime, and oil and gas operations. The company has a strong track record of delivering value to shareholders and offers exposure to high-growth industries. Kongsberg Gruppen is also well-positioned to benefit from the growth in global trade.

Summary

Investors looking for exposure to the Norwegian stock market should consider these five stocks. These companies offer a diversified mix of businesses and are well-positioned to benefit from the country’s strong economy. Norway is a great place to invest in stocks. With a stable economy and strong companies, the country offers foreign investors several attractive investment opportunities. So, if you’re looking for a well-diversified portfolio, consider investing in some of the best stocks on the Norway Stock Exchange. Before investing in the stock market, new traders are advised to use an experienced and reliable online broker from Saxo Bank and trade on their demo account to practise different trading strategies.